Great Expectations
What Insurance Agents Can Anticipate In The Year Ahead
To say that 2020 has been a challenging year is probably the understatement of a century. While every new year comes with changes that can be difficult to predict when you are looking ahead, insurance agents and agencies are well-equipped to handle life’s uncertainties. After all, working through uncertainties is part of the job. Still, every industry can leverage the power of advance warning. At GS National Insurance, we’re helping our independent insurance agents and agencies prepare and plan for 2021.
Here are some of the possibilities that we can expect for the new year:
- The Impact of COVID-19 Will Linger: Due to the disruption from the COVID-19 pandemic, many insurers provided premium relief and waived costs associated with certain COVID-19 treatment for members throughout 2020. For 2021, analysts estimate that disruption from a second wave of coronavirus in winter could push out more elective care, possibly reducing the average growth by one-third, compared to the average rate of growth over the last five years. Agents can prepare for a slower growth in medical cost trends by revving up end-of-year marketing and continuing to search for existing opportunities to add value, cross-sell, and upgrade current policies in ways that benefit the client.
- Healthcare Politics: On the heels of the 2020 US Presidential Election, healthcare remains one of the most complex and fiercely debated topics in and around Washington. As 2021 rolls in, a shift in political dynamics and policies related to healthcare will bring about added uncertainties, as well as a growing list of questions from clients. As an agent, it’s important that you keep up with the headlines and work to provide accurate, timely information to clients. Remember that if you need help, the Dedicated Broker Service Department through Transcend at GSNI is here for you. Your dedicated Broker Communications Specialists will be knowledgeable of up-to-date information related to national healthcare in addition to the specific regulations that vary state by state.
- Medicare Benefit Changes: In working to serve the senior marketplace, our partner agents and agencies are always seeking to keep current with changes that affect Medicare. At the time of this article, there are a few important changes to Medicare for 2021. Some of the upcoming changes apply to Medicare Advantage and Medicare Part D, as well as Original Medicare. A few of the changes for the new year, compared to 2020, include:
- A $5 increase in the Medicare Part B deductible
- Increases in Part A premiums, deductible, and co-insurance
- Medigap Plans C and F are no longer available for purchase by newly eligible Medicare beneficiaries
- An estimated 26 million will be enrolled in Medicare Advantage by the end of 2021
- Medicare Advantage plans are available for people with ESRD as of 2021
- The maximum out-of-pocket limit for Medicare Advantage plans is increasing to $7,550 for 2021
- The Part D donut hole no longer exists, but a standard plan’s maximum deductible is increasing to $445 in 2021. The threshold for entering the catastrophic coverage phase is increasing to $6,550
We know that you may have questions on how you can better serve your senior clients. Simply contact our Broker Service Department with questions or concerns. Your dedicated Broker Communications Specialist will be happy to assist you and provide more information.
- Pharmaceutical Prices Could Become Even More Critical to The Medical-Cost Trend of 2021: As more than one hundred drug manufacturers work on the development of a vaccine for COVID-19 as well as therapeutic treatments to assist patients with coronavirus, prices for these therapies may, in some cases, cost patients more than $3,000 with private insurance. Agents should expect concerns and questions about the costs of drug prices in the coming year. Be prepared to check with carriers, keep current with the news as it relates to changing policies and regulations, and don’t be afraid to ask questions, too. While drug prices are always a concern for clients, 2021 may spotlight this issue more than ever before.
GSNI partners with its agents and agencies to provide valuable marketing and informational resources to help ease concerns and build success. While 2021 may continue to share in some of the complexities of 2020, every new year brings a chance for renewed strength, inspiration, and opportunities for newfound success. In the year ahead, just as right now, count on GSNI to be with you each step of the way.
SOURCES:
https://www.medicareresources.org/faqs/what-kind-of-medicare-benefit-changes-can-i-expect-this-year/
GS National Insurance is an independently owned insurance marketing organization. We specialize with helping independent advisors increase their Health, Life and Annuity Business. Our primary focus is the senior health insurance marketplace. We combine technology and experience to deliver high quality service and support. Learn more at gsnational.com
